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Customer Lifetime Value Calculator

Calculate what a customer is worth across the whole relationship, not just the first sale.

Your numbers

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Result

Lifetime revenue $6,800
Lifetime gross profit $3,060
Annual value per customer $1,360
Lifetime purchases 8.0
Each customer is worth $6,800 in revenue over 5 years, $3,060 in gross profit, across 8.0 purchases.

Uses a simple undiscounted model. Money received in five years is worth less than money today, so long-horizon LTV figures should be treated as an upper bound.

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Questions

About this calculator

How do I find my real customer lifespan?

Look at customers who first bought five years ago and see how many still appear in your system. That beats an estimate from memory, which is almost always optimistic.

Should I use revenue or profit LTV?

Profit, when comparing against acquisition cost. Revenue LTV makes almost any marketing channel look affordable.

The formula

LTV = average sale × purchase frequency × customer lifespan

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Good numbers still need customers

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